Mylan Inc to acquire Famy Care's businesses for $800 mn

US-based Mylan Inc through its Indian subsidiary Mylan Laboratories has signed a definitive agreement to acquire certain female health care businesses from Famy Care Ltd, a specialty women's health care company with global leadership in generic oral contraceptive products (OCPs), Mylan Inc said in a statement.

The deal envisages payment of $750 million in cash plus additional contingent payments of up to $50 million, it added.

"The acquisition will build on Mylan's existing partnerships with Famy Care in North America, Europe and Australia, and provide Mylan with an enhanced and now vertically integrated platform that will accelerate the company's growth in the important global women's health care space," the company said.

Mumbai-based Famy Care focuses on female reproductive health care and is world leader in supplying a wide range of contraceptive pills, injectables and devices.

It sells products in over 100 countries. It had attracted PE investment from AIF Capital, one of Asia's long-standing independent private equity firms.

Mylan said the acquisition of the Famy Care's businesses will make it a hormonal contraceptives leader in high-growth emerging markets around the world.

The transaction is expected to close in the second half of 2015, subject to regulatory approvals and certain closing conditions. In 2008, Mylan had formed a partnership with Famy Care, significantly enhancing its presence in the women's health care segment in the US and other developed markets.

Commenting on the development, Mylan CEO Heather Bresch said: "With today's acquisition, we are building on this successful partnership and further accelerating our global growth in this important therapeutic area."

As part of the deal, 900 employees of Famy Care will become a part of Mylan, he added.

Famy Care Non-executive Chairman JP Taparia said: "We foresee significant opportunities in the women's health care business across developed and emerging markets, and the proposed transaction provides an opportunity for our team to capture the opportunity in an even more effective manner."

Shareholders of Famy Care will evaluate and pursue other opportunities in the residual Famy Care business outside of women's health care segment, Taparia added.

Mylan said more than 15 per cent of the world's women using oral contraceptive pills "today use a Famy Care product".